What it does

CP 99 93 tells the insured that the rates used to develop the commercial property premium are tentative. Once the insurer develops the actual rates, it will adjust the premium effective from the inception date of the coverage part. On a renewal, the adjustment is effective from the renewal date.

Why it is used

Many commercial buildings are specifically rated under ISO's Specific Commercial Property Evaluation Schedule (SCOPES), which develops a loss cost for the individual risk. When a policy must be bound before that specific rate is available, the insurer issues the policy on a tentative rate and attaches this notice so it can adjust the premium retroactively.

Quoting and selling notes

• Warn clients that the final premium may go up or down after the rate is developed, and budget accordingly.
• Follow up with the carrier to get the final rate promptly, especially for large or newly acquired buildings, and confirm when the adjustment endorsement will be issued.